By Our Correspondent
ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb on Thursday presented Pakistan’s Economic Survey 2025-26, acknowledging that key agriculture and industrial growth targets were not achieved during the outgoing fiscal year despite notable progress in economic stabilization.
Speaking at a press briefing in Islamabad, Aurangzeb said Pakistan faced multiple challenges throughout the year, including global tariff uncertainties, severe floods in late 2025, and regional tensions earlier this year. He said these events tested the country’s resilience but did not derail its economic recovery.
The finance minister stated that Pakistan’s economy expanded to $452.1 billion, while per capita income increased from $1,751 to $1,901. He added that economic growth could have exceeded 4% had regional geopolitical tensions not affected economic activity.
According to the survey, several industries recorded positive growth, including cement (10%), fertilizer (17%), and petroleum (5%). The services sector expanded by 4.9%, while 16 of the country’s 22 manufacturing sectors posted growth during the year.
Aurangzeb highlighted improvements in fiscal management, noting that the fiscal deficit was contained at 0.7%, while the primary surplus reached 3.2% of GDP during July-March. Inflation eased significantly, averaging 6.7% during July-May.
Pakistan’s external sector also showed strength. The current account posted a $72 million surplus, while foreign exchange reserves climbed to around $17.1 billion and are projected to reach $18 billion by the end of June.
Remittances from overseas Pakistanis reached a record $33.9 billion during the first eleven months of the fiscal year, with monthly inflows hitting an all-time high of $4.3 billion in April 2026. IT and technology exports rose to $3.8 billion, while freelancers contributed nearly $1 billion in foreign earnings.
The minister said deposits under the Roshan Digital Account initiative reached $12.7 billion, while investor participation in the Pakistan Stock Exchange surpassed 563,000 accounts. Eleven new companies were listed during the year, and more than 39,000 new firms were registered nationwide.
Aurangzeb also announced that allocations for the Benazir Income Support Programme had been increased to Rs722.5 billion to support low-income families. He added that privatization efforts for entities including Pakistan International Airlines, First Women Bank, and power distribution companies would be accelerated.
Meanwhile, Planning Minister Ahsan Iqbal stressed that Pakistan still needs to build a stronger export-led economy, emphasizing that sustainable long-term growth depends on policy continuity and political stability.
